ICE canola futures rise as heat stresses European rapeseed crop

ICE canola futures ended higher on Wednesday on concerns that a severe heat wave would reduce European rapeseed production this season, potentially stoking demand for Canadian exports, traders said.

* Temperatures across northern Europe hit record highs on Wednesday in the second heat wave this month. The crop-stressing conditions are expected to last until Friday.

* Most-active November canola ended $2.70 higher at $450.20 per tonne. The contract touched a three-week high during the session.

* Hedge selling clipped gains late in the session as farmers seized the chance to liquidate some of their stored canola at higher prices and ahead of the upcoming harvest.

* Canola also drew some spillover support from soybean futures, which climbed on adverse US crop development weather and hopes for revived trade talks between the United States and China.

* Spread trades totaling about 3,200 lots on the day were not a significant market driver on Wednesday.

* Chicago Board of Trade August soybeans settled 5-1/4 US cents higher at US$8.91 a bushel.

* Paris Matif November rapeseed futures rose 1% and Malaysian October palm oil futures gained 1.2%.

* The Canadian dollar weakened on Wednesday, holding near a one-month low against the US dollar as investors awaited US economic data that could help guide the Federal Reserve's interest rate decision next week.